At the last point inflation was 2.5%, the latest data from the Office of National Statistics it has jumped 0.5% to 3%. Not a great sign and puts more interest rate cuts at doubt.
The predicted 2.1% inflation figure for September was smashed as it fell to 1.7%. What matters to us on this site is whether interest rates will now fall?
There has been a lot more talk about inflation in recent weeks and months. More than usual that is for sure. When speaking with people about the economic position I find many don't really understand inflation in that much detail. No issue with that, all most want to know is how it affects them so don't spend time understanding it. I have put together this short guide to give more but not a huge amount of detail on the subject.
Inflation has come down quite significantly but that does not mean it's good news for interest rates falling anytime in the very near future.
Inflation returns to a more normal level of 2.3% close to being within the target of 2%.
Inflation has risen following a decent downward run. What does this mean for prices and, more importantly, for mortgage holders regarding interest rates?
Inflation falls to 2%, back in line with normal levels.
Inflation remained steady at 2.2% in August 2024. There was hope it would dip below 2% by this point in the year, but holding instead of increasing is still welcome. It's still good news for interest rates, we hope.